New York is a ‘no-fault’ car insurance state
New York has a no-fault system for car accidents. By law, drivers must carry at least $50,000 of no-fault car insurance, also called personal injury protection (PIP).[1] If you get into a car accident, you’ll file your claim with your own insurance company rather than with the other driver’s insurance company.
The state’s no-fault insurance laws require you to file your claim within 30 days of the accident. The claim must list the time, place, and circumstances of the auto accident.
You can sue another driver if you meet New York’s serious injury threshold. State law defines a serious injury as one that results in death, dismemberment, significant disfigurement, or fracture, among other things.[2]
No-fault states typically have higher insurance premiums than at-fault states. But it’s still possible to find cheap car insurance in New York.
At-fault vs. no-fault car insurance
In an at-fault, or full tort, state, the driver who caused the accident is liable for property damage and injury claims. In a no-fault state, each driver must carry PIP insurance to cover their own personal injury claim, including medical care and lost earnings, after an accident.
Question | At-Fault State | New York: No-Fault State |
|---|---|---|
| Who pays first for injuries? | The at-fault driver’s insurer | Your own insurer |
| Is PIP required? | No | Yes |
| Can you sue the other driver? | Yes | Yes, in cases of serious injury |
In total, 12 states have no-fault systems: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.[3]
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How do accident claims work in New York?
After a car accident in New York, each driver will file a no-fault benefits claim for injuries with their own insurance company, no matter who caused the accident. Each driver’s PIP coverage will pay their medical expenses and lost wages, up to the policy limits.
Your medical insurer must submit healthcare bills for the injured person to your insurance company within 45 days of medical treatment.
The driver who caused the auto accident is responsible for property damage liability claims. New York requires drivers to have a minimum of $10,000 of property damage liability coverage to drive legally.
A driver runs a red light during New York City rush hour and T-bones your car, denting your car door and breaking your arm. That driver’s liability insurance would help pay for repairs to your vehicle. Your own PIP coverage would pay for medical bills and other no-fault benefits related to your broken arm.
What are shared-fault rules in New York?
New York follows the pure comparative negligence rule.[4] That means you may be eligible to recover damages through a personal injury lawsuit even if you’re partially responsible for a car accident that caused your injuries. You may need a personal injury lawyer to help you with your lawsuit.
The amount of compensation depends on your portion of the fault, as determined by the court. This only applies to serious injuries as defined by New York law. If your injuries qualify, you can sue the other driver for pain and suffering, economic losses, and other necessary expenses. The court then assigns fault to each driver based on the accident report.
For example, if a jury determines you’re 70% at fault, you may recover 30% of the damages. In monetary terms, that means you can recover $3,000 of a $10,000 injury claim.
An at-fault accident on your driving record can often increase your insurance premiums. So, if a court assigns a portion of the fault to you, your insurance company may bump up your rates.
Minimum car insurance requirements in New York
New York requires drivers to carry 25/50/10 split limits on their insurance policies. The following table shows the minimum auto insurance requirements in New York.
Coverage Type | New York Minimum Requirement | What It Covers |
|---|---|---|
| Bodily injury liability per person | $25,000 | Injuries or death of one person |
| Bodily injury liability per accident | $50,000 | Injuries or death of two or more people |
| Property damage liability | $10,000 | Damage to another vehicle or stationary object |
| Personal injury protection (PIP) | $50,000 | Medical bills, lost wages, and other related expenses for you and your passengers |
| Uninsured/underinsured motorist | $25,000 per person / $50,000 per accident | Medical expenses and property damage after an accident with the driver of an uninsured vehicle |
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What to do after a car accident in New York
If you get into a motor vehicle accident in New York, don’t panic. Follow these steps to get started on your car accident claim:[5]
Check for injuries. If you, your passenger, or the other driver has a serious injury or needs medical attention, call for emergency assistance before you do anything else.
Document the damage. Take photos of the accident scene and the damage to both vehicles to give to your insurance company.
Exchange information with the other driver. New York law requires you to stop after an accident and exchange information, including name, address, driver’s license, insurance, and vehicle registration.
Notify the police. You must call law enforcement if the accident causes injuries, death, property damage, or domestic animal injury. Calling the police is otherwise optional but recommended. You may need a report number for your insurance claim.
Contact your insurance company. Once you’ve addressed any injuries and ensured everyone involved in the accident is safe, call your insurance company to start the no-fault benefits insurance claim process. Provide your insurer with the information and documentation you’ve collected and the police report, if applicable.
New York car insurance FAQs
Once you understand New York no-fault coverage, you’ll be able to find the best policy to suit your needs and budget, even with an accident on your insurance record.
Is New York still a no-fault state?
Yes. New York is a no-fault state, meaning all drivers must carry a minimum amount of personal injury protection (PIP) insurance coverage.
What is the 45-day rule for no-fault claims in NY?
New York no-fault claim rules require you to submit a medical claim no more than 45 days after the date of treatment related to a no-fault car accident.
What does ‘no-fault’ insurance cover?
“No-fault” insurance, also called PIP, covers medical expenses, lost wages, and other out-of-pocket costs (including funeral expenses) for you and any passengers in your car after an accident, regardless of who caused it.
How does New York’s no-fault insurance system work?
Under New York’s no-fault law, all drivers must carry at least $50,000 of personal injury protection. This covers your injuries and those of your passengers after a car accident, regardless of who caused it.
Sources
- Department of Financial Services. "How much auto insurance must I carry?."
- New York Insurance Law § 5102. "SECTION 5102: Definitions (Insurance (ISC) CHAPTER 28, ARTICLE 51)."
- Insurance Information Institute. "Background on: No-fault auto insurance."
- Cornell Law School Legal Information Institute. "Comparative Negligence."
- New York State Bar Association (NYSBA). "LEGALease: If You Have An Auto Accident."
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